CAMA Rejects Plan to Revive Power Market Limited, Warns of Higher Electricity Tariffs

By Peter Magawa…….

The Consumer Association of Malawi (CAMA) has rejected plans to re-establish Power Market Limited (PML), warning that the move could lead to higher electricity tariffs and worsen the financial burden on consumers already grappling with rising energy costs.

CAMA Executive Director John Kapito said reviving PML at this time would have serious implications for both households and businesses.

“The re-establishment of Power Market Limited would have serious negative economic impacts on consumers. Malawi’s electricity sector still depends on maintaining affordable tariffs, which are already very high,” Kapito said.

He noted that PML was previously dissolved due to concerns over its high operational costs and its role in driving up electricity tariffs.

Following its dissolution, the government transferred its functions to the Electricity Supply Corporation of Malawi (ESCOM), which Kapito believes is better positioned to manage the single-buyer system and oversee electricity procurement.

“ESCOM is in a better position to optimise power purchase costs and reduce pressure on end-user tariffs,” he added.

CAMA further argues that Malawi is not yet ready to reintroduce a single-buyer market structure through PML, citing limited electricity generation capacity and persistent supply challenges. The association maintains that the country’s electricity market remains underdeveloped to support such a structure.

The body also highlighted that only about 11 to 15 percent of Malawians have access to electricity among the lowest access rates in the region.

Additionally, CAMA pointed out that proposed electricity tariff adjustments in 2023—some reaching up to 99 percent included approximately 30 percent attributed to administrative costs linked to PML.

CAMA is now urging the government to prioritise strengthening ESCOM by improving efficiency and expanding generation capacity, rather than introducing new institutional structures that could increase costs.

Kapito emphasised that the focus should remain on improving electricity supply and affordability.

“The timing is not right. Malawi is still struggling with generation challenges, and introducing PML now would not add value to consumers,” he said.